Copper gains as Chilean supply worries keep prices supported

what happened

Copper edged higher on Wednesday, with concerns about output in Chile, the world's largest producer, underpinning values as traders tracked events at major mines. According to Newsmetry API, three-month copper on the London Metal Exchange was up 0.4% at $14,631 per metric ton by 0700 GMT, after reaching a three-week high earlier in the session. On the Shanghai Futures Exchange, the most active copper contract climbed 0.2% to 111,080 yuan ($16,598.68) a ton, having touched its loftiest level since September 10 earlier in the day.

According to TD Securities analysts, Chilean risks remain the main driver: strike ballots, worker deaths, operational hiccups and fresh news on mine restarts keep a supply-risk premium in the market. They argue that any escalation in the country would lend extra support to prices in the near term. Talks are under way at BHP's Escondida mine, where the supervisors' union and management are making a final attempt to avert a walkout. On Tuesday, the operator of Centinela and two striking unions also returned to negotiations to end a week-long halt that workers say is disrupting activity. Over the weekend, Codelco partly paused work at El Teniente after a deadly landslide.

Outside the United States, copper stocks have tightened because metal was moved into the country ahead of possible tariffs. Aluminium on the LME slipped 0.3% to $3,028 after an eight-month low on Monday, while the SHFE contract lost 0.8%. Citi lowered its near-term aluminium forecast to $3,000 a ton, citing soft demand, and investors appear to be looking beyond current physical tightness toward a looser balance after 2026. Other LME metals: zinc held at $3,728.50, lead dropped 0.1% to $1,898.50, nickel rose 0.3% to $15,635, tin fell 2.2% to $50,655. On the SHFE, zinc slipped 0.9%, lead added 0.3%, nickel lost 0.1%, and tin dropped 5% to its lowest since late June.

why it matters

For metals markets, the main swing factors are supply disruptions in Chile and stock shifts linked to possible tariffs, while Citi's lower aluminium forecast points to caution about demand. This summarizes the news and is not a price forecast.

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